In-House Counsel

Three comments on special fee arrangements touted by a law firm?s brochure

By Rees Morrison

Excerpt from Kirkland & Ellis? brochure, ?Partnering with Clients Through Legal Risk Sharing,? appeared on a slide at a recent webinar.

"In certain matters, we have taken part of our fee in equity or stock" (See my post of Jan. 18, 2009: share prices, event studies and litigation with 6 references.). That could turn out to be lucrative, if the market reacts to positive legal developments in a major lawsuit.

"Once the Kirkland partner is familiar with the background facts, he or she will submit a proposal to the firms SFA [special fee arrangement] Committee for guidance and approval.? The interpolation of such a committee drags out negotiations over fee arrangements (See my post of Nov. 6, 2007: time constraints on special fee arrangements; and Jan. 13, 2008: delay saps attractiveness of alternative fee arrangements.).

?Some clients like special fee arrangements for their cash flow benefits? (See my post of Jan. 7, 2009: retainer billing and payment with 7 references.). This implies a set amount paid, a retainer, barely an alternative fee, mostly a change in payment timing.

Full post as published by Law Department Management on April 13, 2009 (boomark / email).